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We revisit the relation between equity returns and financial leverage through the lens of a trade-off model with costly capital structure rebalancing. The model provides a “lookalike” Modigliani-Miller equation that predicts that expected equity returns depend on whether a firm's leverage is...
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We revisit the relation between equity returns and financial leverage through the lens of a dynamic trade-off model with costly capital structure rebalancing. The model predicts that expected equity returns depend on whether a firm's leverage is above or below its target leverage. We provide...
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We study the leverage of U.S. firms over their life cycles and the connection between firm leverage, firm growth, and aggregate shocks. We construct a new dataset that combines private and public firms’ balance sheets with firm-level data from U.S. Census Bureau’s Longitudinal Business...
Persistent link: https://www.econbiz.de/10012063843
Studying Corporate Environmental, Social and Governance responsibility (ESG) and its consequences remain a topical concern of the company's stakeholders including governmental and non-governmental organizations, investors and researchers over the past few decades. While most research has studied...
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This paper examines the financial factors affecting profitability across the listed Jordanian service companies …. Insufficient attention has been paid to the influence of profitability specifically revealed by financial indicators. This study … listed. The profitability of Jordan’s service firms is measured by three proxies, including, Return on Equity (ROE), Earnings …
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